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"Hoekstra, Rutger"
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Replacing GDP by 2030 : towards a common language for the well-being and sustainability community
\"How did Gross Domestic Product (GDP) become the world's most influential indicator? Why does it still remain the primary measure of societal progress despite being widely criticised for not considering well-being or sustainability? Why have the many beyond-GDP alternatives not managed to effectively challenge GDP's dominance? The success of GDP and the failure of beyond-GDP lies in their underlying communities. The macro-economic community emerged in the aftermath of the Great Depression and WWII. This community formalised their 'language' in the System of National Accounts (SNA) which provided the global terminology with which to communicate. On the other hand, beyond-GDP is a heterogeneous community which speaks in many dialects, accents and languages. Unless this changes, the 'beyond-GDP cottage industry' will never beat the 'GDP-multinational'. This book proposes a new roadmap to 2030, detailing how to create a multidisciplinary Wellbeing and Sustainability Science (WSS) with a common language, the System of Global and National Accounts (SGNA)\"-- Provided by publisher.
Book
Can we project well-being? Towards integral well-being projections in climate models and beyond
Scientists have proposed many “Beyond-GDP” indicators to replace the Gross Domestic Product (GDP) in order to quantify genuine societal development. While GDP is regularly projected, research on future trajectories of Beyond-GDP indicators is lacking, failing to meet policymakers’ needs. Focusing on the Human Development Index (HDI), this paper attempts to calculate one of the first global well-being projections for 161 countries by 2100 using the shared socioeconomic pathways (SSPs), the socioeconomic inputs underlying global climate change scenarios. The results indicate a potential global well-being improvement from medium to very high level, depending on the SSPs, with most countries reaching high human development under SSPs 1&5. While serving as an initial step in well-being projection, the results highlight a crucial gap in existing climate change models which are used by the IPCC—they inadequately account for the feedback effects of climate change on well-being. This oversight results in counterintuitive or potentially misleading well-being projections. Therefore, we propose steps to improve this situation. By synthesizing climate change feedback effects on HDI determinants, this assessment delves into their implications for well-being and further underscores the necessity for interdisciplinary collaborations among well-being researchers, climate scientists and policy modelers to achieve sound integral well-being projections.
Journal Article
A comprehensive Beyond-GDP database to accelerate wellbeing, inclusion, and sustainability research
“Beyond-GDP” metrics are essential for understanding societal progress. Yet despite their importance, these metrics are scattered across various databases, hindering accessibility and interdisciplinary analysis. Addressing this gap, we present the ‘WISE database’ – the first extensive collection of important Beyond-GDP metrics organized by Wellbeing, Inclusion, and Sustainability (WISE) dimensions. The WISE database consolidates data from a variety of sources, including international institutions and academic publications. It encompasses over one million data points across 244 metrics, covering 218 countries and 61 country groupings, from specific social and environmental indicators to the main Beyond-GDP indexes, and is augmented by essential metadata. The data primarily spans from 1995 to 2015, with some metrics extending back to the 19
th
century. To improve accessibility and data interpretation, a user-friendly online visualization tool has been developed. The WISE database aims to foster a broader view of societal progress, facilitate research on synergies and trade-offs of wellbeing, inclusion, and sustainability, and provide a foundation for interdisciplinary research.
Journal Article
Exploring carbon footprints and carbon intensities of Indonesian provinces in a domestic and global context
Within Indonesia, the structure of consumption and production differs significantly across provinces. This implies that carbon footprints and intensities between provinces are also diverse. This paper calculates historical consumption- and production-based carbon emissions at the provincial level using a multi-scale input-output (IO) database for 2010, in which an environmentally extended multi-regional IO (EE MRIO) table for 34 Indonesian provinces is integrated in the global EE MRIO EXIOBASE with data for 43 countries and 5 rest of the world regions. Emissions from consumption are detailed by product and their points of origin, while emissions from production are detailed by industry and their destinations. Our results show the heterogeneity of Greenhouse Gas (GHG) emissions under both sides. The Java region is a net importer of carbon emission, while Sumatra and Kalimantan are net exporters. In the global context, the Asia Pacific region plays important role in national GHG emissions. Services product contributed 57.1% of national consumption-based GHG emissions, followed by manufacture (30.6%), and agriculture (12.3%). On the national level, 63.5% of national GHG emissions are related to household consumption. There is a high disparity across provinces in Indonesia in carbon footprints. Provincial average per capita carbon footprints vary from 2 t CO 2 e/capita in East Nusa Tenggara to 13.84 t CO 2 e/capita in East Kalimantan. Carbon intensity also varies from 0.83 kt CO 2 e/M Euro in Jakarta to 2.37 kt CO 2 e/M Euro in North Kalimantan. Agriculture and food products dominate household carbon footprints, while construction leads in government carbon footprints. Utilities and transportation services play important roles on national carbon intensities. We further correlated the Human Development Index (HDI) with per capita carbon footprints and expenditure, and find that provinces with similar GHG emissions and expenditure per capita income as Java, tend to have a lower HDI. Understanding development status and province-level characteristics is important for selecting policy strategies.
Journal Article
Structural Decomposition Analysis of Physical Flows in the Economy
Many environmental problems can be attributedto the extraction and emissions of physicalsubstances. Increasing our understanding of theeconomic and technological driving forcesbehind these physical flows can contribute tosolving the environmental problems related tothem. The input-output framework is a usefulsetting in which to integrate detailedinformation about economic structure andphysical flows. In this article a specificmethod in input-output analysis is reviewed,namely Structural Decomposition Analysis (SDA).It is based on comparative static analysis,which decomposes historical changes of a policyvariable into determinant effects. SDA has beenapplied, for example, to analyze the demand andtechnological driving forces of energy use,CO2-emissions and various other pollutantsand resources. This article examines thetheoretical aspects of structuraldecomposition, in particular those concerningphysical flows and environmental issues.Furthermore, the article includes an extensivesurvey of empirical studies. Copyright Kluwer Academic Publishers 2002
Journal Article
The role of small- and medium-sized enterprises in the Dutch economy: an analysis using an extended supply and use table
Firm size is increasingly acknowledged as an important factor for (macro-)economic policy. It is known that the overall importance of small- and medium-sized enterprises (SMEs) is different relative to large multinationals in terms of their impact on economic growth, exports and innovation. Yet empirical evidence to substantiate the role of firms of different sizes is rare. To tackle this problem, we develop a novel approach by extending the Dutch supply–use framework to firm size. We utilize firm-level data to construct a purpose-built supply–use table distinguishing between SMEs and large enterprises and derive an extended input–output table. In doing so, we adopt a more evolved definition of SMEs, accounting for the fact that small firms may be subsidiaries of large (multinational) enterprise groups. The analysis shows that due to their function as suppliers, SMEs benefit much more from Dutch exports to foreign markets than the traditional export figures show. SMEs are less dependent on imports than large enterprises. This might be detrimental to the competitiveness of SMEs if they do not fully appreciate the benefits of sourcing internationally in terms of cheaper or higher quality inputs. The paper shows the policy relevance of macroeconomic statistics which distinguish firm size.
Journal Article
Economic and environmental impact of electric vehicles production in Indonesia
The use of fossil fuel-based vehicles may gradually be replaced by electric vehicles in the future. The trend indicates that the number of users of electric vehicles, especially electric cars, continues to increase. Indonesia is well-positioned to take advantage of this opportunity as it has the world’s largest nickel reserves, an essential raw material for making electric vehicle batteries (EVB). The study examines the economic and environmental implications if Indonesia were to successfully set up electric vehicle (EV) production rather than exporting such raw materials overseas. We use an input–output model to estimate electric vehicle production’s economic and environmental impacts in Indonesia. This study assumes that nickel, which is usually exported, is absorbed by domestic economic activities, including being used in manufacturing batteries and electric vehicles in Indonesia. Our estimates include direct and indirect output, value-added, and employment changes. The same model is also used to estimate changes in emissions’ environmental costs. It is evident from the results that batteries and EV production are economically beneficial. Additional value-added is Rp. 100.57 trillion, 1.5% of GDP in 2010. At the same time, 538,658 additional jobs were created, which is about a 0.5% increase. Lastly, EV production will have extra external costs of emissions, around Rp. 2.23 trillion, or an increase of about 0.6%. Based on these findings, it is concluded that electric vehicle production increases productivity, gross value-added, and job creation with a relatively small impact on the environment. A limitation of this study is that we assumed EVs were produced for export only, and we did not assume a reduction in economic activities in the supply chain of conventional vehicles.Economic and Environmental Impact of Electric Vehicles Production in Indonesia.
Journal Article
Implementation Barriers for a System of Environmental-Economic Accounting in Developing Countries and Its Implications for Monitoring Sustainable Development Goals
The desire to include environmental information in national accounts has resulted in the construction of a system of environmental-economic accounting (SEEA). As the international statistical standard for environmental-economic accounting, the SEEA can provide valuable support for monitoring Sustainable Development Goals (SDGs). This study assesses the potential use of the SEEA for monitoring SDGs. This paper shows that, in theory, the potential for this system is significant. However, based on a literature review and survey of SEEA experts, practical problems in implementing the SEEA are significant, especially in developing countries. Such issues include data availability and quality, as well as the availability of funding and human resources. Capacity development is key to establishing successful implementation of the SEEA in developing countries. For example, the World Bank’s WAVES program (Wealth Accounting and Valuation of Ecosystem Services) has been instrumental in capacity building in developing countries, which, however, still show great variation in how they implement SEEA.
Journal Article
Reducing the variation of environmental footprint estimates based on multiregional input-output databases
Purpose
Footprint estimates from various MRIO (multi-regional input-output) databases sometimes vary significantly. As a result, conclusions about the absolute levels or trends of a footprint may be inconsistent. The sources of these variations are attributable to three phases in the footprint calculations: differences in data preparation, MRIO database construction and footprint calculation.
Design/methodology/approach
This paper provides a literature overview and a breakdown of the computation of footprints based on MRIO database. Based on these insights strategies that lead to lower variation in footprint estimates are formulated.
Findings
Convergence of footprint estimates require enhanced cooperation amongst academics, amongst statisticians and between academics and statisticians.
Originality/value
Reducing the variation in footprint estimates is a major challenge. This paper aims to contribute to this convergence in three ways. First, this paper provides the first overview of footprint work at statistical offices, government agencies and international organisations. These are the front-runners that may play a role in cooperating with academics (and other statistical offices) to resolve some of the issues. Second, a detailed analysis of the sources of the variation in estimates is provided. These problems are illustrated using examples from the various MRIO databases and the data of Statistics Netherlands. Thirdly, strategies are discussed that might help to reduce variation between footprint estimates.
Journal Article